A BUSINESS-ORIENTED OVERVIEW OF INTELLECTUAL PROPERTY FOR LAW AND

MANAGEMENT STUDENTS

Harnessing Creativity

Florence Rojal,Creative Industries Division,

World Intellectual Property Organization

Geneva, May 29, 2007

The Creative Economy and the Creative Industries

– The Creative Economy

– Creative Industries: industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of IP (UK Department for Culture, Media and Sports, creative industries mapping document 2001)

– Here I will focus on the industries where copyright plays an identifiable role. These industries are also known as “copyright-based industries”

Reminder: Copyright and Related rights

• Copyright designates the rights given to creators for their literary and artistic works (exclusive right to use the work/ legal monopoly)

– Ex: literary,dramatic and choreographic wks, artistic, graphic wks, architecture, advertisements...

• Related rights: they protect those who assist intellectual creators in disseminating their wks to the public

– three kinds: rights of performing artists, rights of producers of sound recordings, rights of broadcasting organizations

Economic and Moral Rights

Economic Rights

– Reproduce or make copies

– Distribute to public

– Sell, rent*, lend*

– Display or perform to public

– Adapt and translate

– Make available on the Internet

Moral Rights

– Right of authorship: acknowledgement

– Right of integrity: object against mutilation and/or distortion

* Generally applies only to certain types of works: Cinematographic works, musical works, or computer programs.

Related Rights

Rights of broadcasting organizations

in their radio and television programs and in Internet broadcasts such as ‘podcasts’

Rights of producers of sound recordings

(phonograms)

in their recordings (cassette recordings, compact discs, etc.)

Rights of

performers

• actors

• musicians

• singers

• dancers

• or generally people who perform

Creation

Formatting

Production

Production of equipment

Distribution

Distribution materials

Marketing and promotion

Consumption and use of the work

Production of equipment for the consumption

Multiple Economic Effects of Copyright

Development of creative industries

• Target audience:

– Policy makers: awareness raising

• evidence-based material:

– the WIPO Guide

– Preparation of an econometric model for measuring copyright piracy

– Creators and creative enterprises: professional support

The WIPO Guide on Surveying the Copyright-Based Industries - Background

Strong interest by the WIPO Member-States

some research had already been done, however there were considerable differences in methodologies

– scope, categorization of the industries, choice of indicators, purpose

A need for a harmonized approach in order to

– facilitate policy-oriented research worldwide

– compare meaningfully the results across countries

– position the industries in the national economy

– adjust policies and practices

– identify competitive advantages

The WIPO Guide

• a) purpose of the guide:

– to summarize the existing experience in surveying the copyright and related-rights industries

– to develop a practical instrument in the form of guidelines, recommendations and survey methods to determine size and economic contribution of a nation’s creative and information sector

– to establish a basis for comparison for future surveys (common methodology)

• b) contents of the guide:

– designed to provide guidance to countries wishing to measure the size of their creative sector

– size is determined by using three main indicators: the value added generated by such industries (GDP), their share in employment and their contributions to foreign trade

Defining the Copyright-Based Industries: Classification under the WIPO Guide

Core copyright industries - industries that are wholly engaged in creation, production and manufacturing, performance, broadcast, communication and exhibition, or distribution and sales of works and other protected subject matter

fundamentally exist to produce or distribute copyright materials

Nine groups according to product or service:

press and literature music, theatrical productions, operas

motion picture and video radio and television photography software and databases visual and graphic arts advertising services copyright collecting societies

Interdependent Copyright Industries

• Interdependent industries - industries that are engaged in production, manufacture and sale of equipment whose function is wholly or primarily to facilitate the creation, production or use of works and other protected subject-matter

• manufacture, wholesale and retail of TV sets, radios, CD and DVD players, electronic game equipment, computers, musical instruments, photographic and cinematographic instruments, photocopiers, blank recording material, paper

– depend on the output of the core industries

– deal predominantly with facilitation equipment

– mostly consumer durables

Partial and non-dedicated support industries

• Partial copyright industries: industries in which a portion of the activities is related to works and other protected subject matter and may involve creation, production or distribution and sales (crafts, fashion, textiles and footwear, jewelry)

• Support industries: industries in which a portion of the activities is related to facilitating broadcast, communication, distribution or sales of works and other protected subject matter (ex: general wholesale and retailing, general transportation, telephony, Internet)

Categories of Copyright - Based Industries

a. General wholesale & retailing

b. General Transportation

c. Telephony & Internet

Non-Dedicated

a. Apparel, textiles & footwear

b. Jewelry & coins

c. Other crafts

d. Furniture

e. Household goods, china & glass

f. Wall coverings & carpets

g. Toys & games

h. Architecture, engineering, i. Interior Design

j. Museums

Partial

a. TV sets, Radios, VCRS, CD Players, Cassette Players

b. Computers & Equipment

c. Musical Instruments

d. Photographic & Cinematographic Instruments

e. Photocopiers f. Blank Recording Material

g. Paper

Inter-dependent

a. Press & Literature

b. Music, Theatrical Productions & Operas

c. Motion Picture & Video

d. Radio & TV

e. Photography

f. Software & Databases

g. Visual & Graphic Arts

h. Advertising Services

i. Copyright Collecting Societies

Core

Survey Methodology

• Core Copyright

IndustriesCore Copyright

Industries

Interdependent Copyright Industries

Interdependent Copyright Industries

Partial Copyright Industries

Partial Copyright Industries

Non-Dedicated Support IndustriesNon-Dedicated

Support Industries

1. Legislative & Data Review

1. Legislative & Data Review

4. Numerical Methods4. Numerical Methods

3. Interviews3. Interviews

2. Industry Survey

2. Industry Survey

Economic Contribution•Output•Value Added•Employment•Foreign Trade

Economic Contribution•Output•Value Added•Employment•Foreign Trade

Survey Results

Country Contribution to GDP Employment

(2005) USA 11,12 8,49

(2001) Singapore 5,70 5,80

(2004) Canada 4,5 5,55

(2000) Latvia 4,00 4,50

(2002) Hungary 6,67 7,10

Philippines(1) 8,17 8,89

Russia(2) 5,06 4,59

Ongoing WIPO surveys - Brazil, Mexico, Romania, Croatia, Colombia, Jamaica, Peru, Bulgaria, Tanzania, Malaysia, Lebanon, Ukraine

Individual studies - Australia, Azerbaijan, Finland, Denmark

(1)preliminary data (2)preliminary data, % of GVA

Source: WIPO

Highlights

The Copyright-Based Industries In Singapore - employed 1 out of 17 people

In Latvia provided 7 times more employment than manufacturing

In Hungary contributed to 7 -9% of the overall economic performance of the country

In Canada average annual growth rate in the copyright industries was twice the rate of the general economy

In the US employment in the copyright industries was higher than the total employment levels of the entire health care and social assistance sectors and exports were higher than in the aircraft industry

Adoption of policy measures to foster creativity and support creative

entrepreneurs Studies can assist in determining the policy framework that needs to be put in

place to support the creative industries and enhance their economic contribution to the national economy

• the policy intervention could consist in:

– facilitating market access for small players

– assisting creators in receiving equitable rewards for their creativity (proper IP legal framework, enforcement)

– education & skills (management and technical skills)

– support the digital shift

– support institutions/networks/facilities

– finance (subsidies, tax incentives, private investors)

– encourage public-private sector partnerships

– establish intermediary institutions to forge collaboration among various stakeholders (producers’ associations, cooperatives…)

Specificities of the creative market and the creative enterprises

• Three main sub-sectors:

– arts & culture

– media & entertainment

– creative services sector

• Dual nature of their output: both a cultural asset and a tradable commodity

• Uncertainty/ high risks

• Short product life cycles/ need for constant renewal

• Intense competition

• Rely on creative talent/ multidisciplinary teamwork

• Lack of management skills

How can IPR’s help? Effective exploitation of IP rights

• -Protection/ ownership

• -Competition

• -Generate revenue

• -Raise funds

• -Take action against infringers

• -Partnerships/business operations with other sectors

• -Digital opportunities

– technological advances

– digital piracy

– protection of works in electronic form

Overview of national and regional initiatives to support the development of managerial capabilities

in the creative industries

• -Local Government: Queensland Government and the “creative industries toolbox”

• -National level: UK creative industries task force

– University level: Own-it

– Bocconi University (Milan) will launch a Master Program in Economics and Management in Arts, Culture, Media and Entertainment in September

• Regional level: NORDERN (Nordic Innovation Centre)

• European level: “Strategies for a Creative Europe”

– Economic Clusters of Cultural Entreprises (ECCE)

– Virtual Incubators (Leonardo project). On-line resources

Work in Progress CID

• Preparation of an econometric model for measuring copyright piracy

• Preparation of booklets on IP issues for the film, publishing and music industries

• Preparation of a study on the management of creative enterprises

• Preparation of a study on the economic, social and cultural impact of IP in the creative industries

• Cooperation with UNCTAD, UNESCO, UNDP, ILO and ITC on the preparation of the Creative Economy Report

• Launch of a WIPO intensive course on economics of the creative industries and the role of IP- Rotterdam, Netherlands

• Organization of an international conference on IP and the creative industries in October 2007

Ongoing WIPO surveys - Brazil, Mexico, Romania, Croatia, Colombia, Jamaica, Peru, Bulgaria, Tanzania, Malaysia, Lebanon and Ukraine

Thank You!